A section of the California Government Code, (Government Code §§ 56000 et seq.), the Cortese-Knox-Hertzberg (CKH) Local Government Reorganization Act of 2000 (Government Code §§ 56000 et seq) exists to provide LAFCO with its powers, procedures and functions. This law gives LAFCO power to “approve or disapprove with or without amendment, wholly, partially or conditionally” proposals concerning the formation of cities and special districts, annexation or detachment of territory to cities and special districts, and other changes in jurisdiction or organization of local government agencies.

In reviewing proposals, LAFCO is required to consider certain factors such as the conformity between city and county plans, current levels and need for future services to the area, and the social, physical and economic effects that agency boundary changes present to the community.

LAFCO is also given authority to make studies of existing governmental agencies in an effort to improve the efficiency of urban services.